BROWNSVILLE, TX – The Brownsville Board of Public Utilities (BPUB) is working to determine its options for distributing the remaining $29 million from the Tenaska Equity Fund (TEF). Before any of that money is distributed, BPUB must comply with the terms of its bond ordinance.
Any TEF distribution requires BPUB to demonstrate that this “will not affect the reliability, efficiency or availability of utility service required to be delivered to system customers,” according to the Special Covenants of BPUB Bond Ordinance 2022-1700 Section 33L.
During the BPUB board meeting on Monday, January 9, chief financial officer (CFO) Miguel Perez presented a preliminary timeline that runs from January through the end of April outlining a mandatory four-step process.
The process indicates that the designated financial officer will issue a certification system that will generate sufficient revenue to cover debt service obligations; in addition, the governing body made a finding and determination in accordance with the certificate issued by the designated financial officer.
The BPUB Board also recommends action based on the written certification from a nationally recognized consulting engineering firm. Whereas the rating agencies will provide letters affirming that the action will not result in a withdrawal or downgrade of the rating.
At the board meeting, it was approved for the CFO to move forward with these steps, including beginning the process of identifying and contracting with the engineering firm necessary to begin certification.
In anticipation of the approval, BPUB Board members Joseph Hollmann and Patricio Sampayo, as well as City of Brownsville officials will meet at the Joint City Council Subcommittee session to discuss the distribution of the TEF.